Stefano Perini, research manager with IDC Data and Analytics, has revealed the size of the cyber security spending in 2028 and growth in 2025.
Global security spending is expected to grow by 12.2 percent in 2025, driven by the rise of AI-powered threats and the expanding digital landscape. The sustained growth in cybersecurity investments is projected to reach $377 billion by 2028, according to the latest forecast from the International Data Corporation (IDC) Worldwide Security Spending Guide.
Geographic Distribution of Cybersecurity Spending
The United States and Western Europe are poised to lead the global cybersecurity market, accounting for more than 70 percent of the total spending in 2025. However, emerging markets such as Latin America, Central & Eastern Europe, and the Middle East & Africa (MEA) are witnessing rapid growth in security investments.
In the MEA region, digital transformation efforts and the adoption of emerging technologies, particularly in Gulf Cooperation Council (GCC) countries, are driving cybersecurity demand. Both governments and enterprises are prioritizing security solutions to combat evolving threats, while also investing in cybersecurity education and training programs to enhance resilience.
Technology Segments in Cybersecurity Spending
Cybersecurity investments are categorized into three primary technology groups: software, services, and hardware.
Security Software:
Expected to be the largest and fastest-growing segment in 2025, representing over half of the worldwide security market.
Growth is primarily fueled by cloud-native application protection platforms (CNAPP), identity and access management (IAM) software, and security analytics solutions.
Organizations are emphasizing integrated cyberthreat detection and response across their operational perimeters.
Security Services:
The second fastest-growing segment, driven by managed security services (MSS).
Organizations of all sizes are increasingly relying on MSS as a flexible and efficient way to tackle new security challenges.
Demand for consulting, incident response, and security training services is also rising.
Security Hardware:
Although achieving single-digit growth, security hardware remains an essential component of cybersecurity strategies.
Investments in network security appliances, firewalls, and intrusion detection systems continue to be critical for organizations seeking robust security infrastructure.
Industry-Specific Cybersecurity Investments
Certain industries are prioritizing cybersecurity spending due to their high exposure to cyber threats and regulatory requirements. The top industries investing in security in 2025 include:
Banking and Financial Services – Protection of sensitive financial data and transactions against cyber fraud and breaches.
Federal/Central Government – National security concerns and compliance with cybersecurity regulations.
Telecommunications – Securing vast networks and infrastructure from cyber intrusions.
Capital Markets – Fastest-growing sector in cybersecurity spending (19.4 percent YoY growth), driven by high-value financial transactions.
Healthcare Providers – Increasing investment in securing patient data and critical healthcare infrastructure.
Additionally, media and entertainment (17.1 percent YoY growth) and life sciences (16.9 percent YoY growth) are among the fastest-growing industries in cybersecurity spending.
Strategic Importance of Cybersecurity Investments
With the rapid advancement of AI and Generative AI (GenAI), cyber threats are becoming more sophisticated, necessitating proactive security measures. Organizations operating in critical infrastructure (oil & gas, telecommunications), developing sensitive assets (aerospace & defense, life sciences), and providing essential services (banking, government, healthcare) are recognizing cybersecurity as a strategic imperative.
Regulatory compliance remains a key driver, but more businesses are adopting a proactive security approach, not just for immediate protection but also as a long-term competitive advantage. This shift highlights the growing importance of cybersecurity in enterprise risk management and business continuity planning.
The Role of Small and Medium-Sized Businesses (SMBs)
While large enterprises dominate cybersecurity spending, small and medium-sized businesses (SMBs) are increasingly recognizing the importance of investing in security solutions. As their digital transformation accelerates, SMBs are focusing on:
Addressing security gaps in their IT infrastructure.
Protecting digital assets and business processes from cyber threats.
Leveraging cost-effective managed security services to enhance security posture.
Conclusion
Cybersecurity spending is on a robust growth trajectory, fueled by evolving cyber threats, technological advancements, and regulatory requirements. Organizations across industries and geographies are prioritizing security investments to safeguard digital assets, ensure compliance, and maintain competitive advantages. As businesses continue their digital transformation journeys, cybersecurity will remain a top strategic priority, underpinning resilience and long-term sustainability in an increasingly interconnected world.
Baburajan Kizhakedath
